DiamondRock Raises $102 Million From Two Secured Financings

DiamondRock Raises $102 Million From Two Secured Financings
Financings Lock in Interest Rates Below 4% for Ten Tears
PR Newswire
BETHESDA, Md., April 1, 2013
BETHESDA, Md., April 1, 2013 /PRNewswire/ --DiamondRock Hospitality Company
(the "Company") (NYSE: DRH) today announced that it raised $102 million
through two separate secured, non-recourse financings with different lenders.
(Logo: http://photos.prnewswire.com/prnh/20040708/DCTH028 )
"These financings accomplished several key objectives for DiamondRock,
including locking-in low interest rates for 10 years, eliminating outstanding
borrowings on the Company's credit facility and funding our previously
announced renovation and repositioning program," stated Mark W. Brugger, Chief
Executive Officer of the Company.
The financings include a $31 million mortgage loan secured by The Lodge at
Sonoma Renaissance Resort & Spa with a term of ten years and a fixed interest
rate of 3.96% and a $71 million mortgage loan secured by the Westin San Diego
with a term of ten years and a fixed interest rate of 3.94%. Principal
repayments on each loan will be based on a 30-year amortization schedule. The
loans are property-specific and non-recourse to the Company subject to
standard exceptions.
The loan proceeds will be utilized to fully repay the $45 million currently
outstanding on the Company's credit facility and fund a portion of its 2013
and 2014 capital expenditures. After repaying the outstanding balance on its
credit facility, the Company will have $200 million of credit facility
borrowing capacity, which is expected to be available to fund the acquisition
of the Hilton Garden Inn Times Square South, anticipated in mid-2014. After
completion of these financings, 13 of the Company's 27 hotels remain
unencumbered by any property-specific debt. Moreover, the Company will have
no corporate debt and no outstanding preferred securities.
About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust
(REIT) that is an owner of premium hotel properties. The Company owns 27
premium hotels with approximately 11,600 rooms and holds the senior mortgage
loan on another premium hotel. The Company's hotels are generally operated
under globally recognized brands such as Hilton, Marriott, and Westin. For
further information, please visit DiamondRock Hospitality Company's website at
www.drhc.com.
This press release contains forward-looking statements within the meaning of
federal securities laws and regulations. These forward-looking statements are
identified by their use of terms and phrases such as "believe," "expect,"
"intend," "project," "anticipate," and other similar terms and phrases,
including references to assumptions and forecasts of future results.
Forward-looking statements are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors which may
cause the actual results to differ materially from those anticipated at the
time the forward-looking statements are made. These risks include, but are
not limited to: national and local economic and business conditions that will
affect occupancy rates at our hotels and the demand for hotel products and
services; operating risks associated with the hotel business; risks associated
with the level of our indebtedness and our ability to meet covenants in our
debt agreements; our ability to complete acquisitions; the performance of
acquired properties after they are acquired; necessary capital expenditures on
the acquired properties; and our ability to continue to satisfy complex rules
in order for us to qualify as a REIT for federal income tax purposes; and
other risks and uncertainties associated with our business described from time
to time in our filings with the Securities and Exchange Commission. Although
we believe the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that the
expectations will be attained or that any deviation will not be material. All
information in this release is as of the date of this release, and we
undertake no obligation to update any forward-looking statement to conform the
statement to actual results or changes in our expectations.
SOURCE DiamondRock Hospitality Company
Website: http://www.drhc.com
Contact: Sean Mahoney, +1-240-744-1150